NDB prices $1.5bn COVID-19 Response Bond
The New Development Bank has priced its inaugural benchmark $1.5 billion three-year COVID Response Bond in the international capital markets.
Citi, Credit Agricole CIB, Goldman Sachs International, HSBC and J.P. Morgan acted as lead managers for the bond. Bank of China, Barclays, DBS Bank Ltd., Industrial and Commercial Bank of China Limited, Mizuho Securities, Standard Chartered Bank, TD Securities acted as co-managers.
Strong investor demand allowed the NDB to tighten the pricing by 7 basis points compared to the upper bound of initial price thoughts and to achieve the coupon rate of 0.625%.
Investor geographic distribution of the final book was Asia 56%, EMEA 29%, and the Americas 15%.
Net proceeds from the issue will be used to finance sustainable development activities in the NDB’s member countries, including emergency assistance loan. Such emergency loans could be used to finance direct expenses related to the fight against the COVID-19 outbreak or provide support to governmental measures contributing to economic recovery in the member countries of the NDB.
